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THE USE OF COST‐BENEFIT ANALYSIS IN REGULATORY DECISION‐MAKING
Author(s) -
Crandall Robert W.
Publication year - 1981
Publication title -
annals of the new york academy of sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.712
H-Index - 248
eISSN - 1749-6632
pISSN - 0077-8923
DOI - 10.1111/j.1749-6632.1981.tb20723.x
Subject(s) - annals , institution , citation , library science , political science , law and economics , sociology , law , classics , computer science , history
Nine years ago, a prominent economist observed at a National Academy of Engineering conference on benefit-risk decision making: . . . while I have found the discussion (at this conference] . . . extremely interesting, I have been disturbed by the absence of the basic principles and methodology of decision analysis and benefit-cost analysis that has been evident throughout the discussion. This lack of awareness of the basic professional literature is, I believe, more fundamental than simple confusion resulting from differences in terminology. . . Statements regarding the difference between objective and subjective probability, the impossibility of considering possible loss of life in dollar terms, and the impossibility of making certain types of value judgements simply would not have occurred so frequently or have been discussed at such length had a fundamental knowledge of decision theory and benefit-cost analysis been common to the participants.’